Cost of living in Chicago for newcomers
Chicago is a popular landing spot for newcomers to the U.S., whether that's immigrants, international students, remote workers, or folks relocating for a job. The city has a solid job market, is pretty diverse, and has decent infrastructure. Plus, compared to some other major cities, it won't completely drain your bank account.
Learning what it actually costs to live here is probably the most practical thing you can do before making the move. Rent, utilities, getting around, groceries, and healthcare, all of it adds up and affects how comfortable you'll feel once you're settled. Sure, Chicago's cheaper than New York or San Francisco, but it's still pricier than a lot of other Midwestern cities. So it sits somewhere in the middle, which works well if you want big-city opportunities without paying West Coast prices.
This guide will walk you through what you can expect to spend, whether Chicago feels expensive, and what kind of income you'd realistically need to be comfortable here.
Is Chicago expensive to live in?
Whether Chicago feels expensive really depends on what you're earning, where you choose to live, and how you spend your money.
Chicago might feel expensive if you're:
- Making less than the average salary in Chicago
- Living downtown or going for those fancy buildings with all the amenities
- Relying on a car and dealing with parking fees everywhere
Chicago might feel reasonable if you're:
- A working professional with a stable or above-average income
- Living in neighborhoods outside the city center
- Mostly using public transportation (which honestly works pretty well here)
So, is Chicago expensive? It can be, but for many newcomers, the average cost of living in Chicago is manageable if you plan things out and make smart choices about where you live and how you get around.
Average cost of living in Chicago (monthly breakdown)
What you'll actually spend each month in Chicago depends a lot on your lifestyle, where you decide to live, and your personal habits. Monthly costs usually cover rent, utilities, groceries, getting around, healthcare, and the usual daily expenses. Housing tends to be higher in central neighborhoods, but other things like public transit and groceries stay pretty reasonable compared to other big U.S. cities.
Looking at a month-by-month breakdown helps you see where your money's going and what you should be budgeting for.
Below is a realistic monthly breakdown of living expenses in Chicago for a single person. These are rough estimates, not exact figures.
| Expense | Estimated monthly cost |
|---|---|
| Rent (1-bedroom apartment) | $1,800 – $2,2002 |
| Utilities | $150 – $250 |
| Groceries | $400 – $550 |
| Transportation | $75 |
| Health Insurance | $350 – $450 |
| Estimated total | $2,675 – $3,455 |
Housing costs in Chicago
Housing is usually where you'll feel the cost of living the most. It's that one expense that quietly shapes everything else – from how often you eat out to whether you can actually save money each month. Rent in Chicago isn't just about square footage; it's more about trade-offs. A nice apartment close to downtown might mean higher rent but shorter commutes, while something farther out gives you more space and room to breathe for less money.
Building age, the neighborhood vibe, and included amenities, all of it matters. For most people, finding a place here feels like trying to balance convenience, comfort, and cost. Getting that balance right makes settling in way easier.
Average rent in Chicago
Average rent varies by apartment type, neighborhood, and how close you are to downtown. Overall, prices are lower than in coastal cities like New York or San Francisco, but higher than a lot of Midwest cities. According to recent data, here's what typical rent looks like:
- Studio apartment: $1,500 – $1,8003
- 1-bedroom apartment: $2,000 – $2,200
- Downtown 1-bedroom apartment: $3,200+4
Meanwhile, more affordable neighborhoods like Albany Park, Rogers Park, Bridgeport, Uptown, and parts of the Northwest Side offer lower rents while still keeping you connected to public transportation and everyday spots.
Cost of living in downtown Chicago
Living downtown comes with a premium, mostly because of the convenience, culture, and energy at the city's core. Apartments here usually cost more, but they put you steps away from work, entertainment, restaurants, and public transit, which makes daily life pretty streamlined.
Here is why downtown costs more:
Proximity to the Loop, River North, and West Loop keeps rents elevated.
Many downtown apartments offer gyms, rooftop terraces, concierge services, and modern finishes that drive up costs.
Apartments tend to be smaller, and parking is often an extra monthly expense, adding to overall living costs.
This is who it’s suitable for:
Downtown life can cut daily travel time dramatically.
Dining, entertainment, and cultural attractions are all within reach.
The trade-offs of living in downtown Chicago include:
Residents pay more for a location where everything is at their doorstep, trading square footage for accessibility and lifestyle.
Utilities and monthly bills
When budgeting for life in Chicago and the rest of Illinois, utilities are one of the recurring costs that can shift quite a bit with the seasons, especially during winter when heating is essential. Planning for these bills is an important part of a realistic cost‑of‑living estimate.
Typical utility costs include:
Most households in the Chicago area pay roughly $80–$1305 per month on electricity alone, depending on usage and apartment size. Bills tend to rise in winter and summer when heating or cooling systems work hardest.
Gas costs can vary even more with the seasons. Monthly bills often land in the $50–$120 range, with winter heating pushing the high end — especially in older, less insulated buildings.
Broadband internet usually runs around $40–$75 per month, again depending on speed and provider. Mobile phone plans are often $30–$70 per month, though premium data plans can be higher.
Water bills are typically $35–$70 monthly, and trash/recycling fees add another $15–$30 if not included in rent.
Utilities naturally vary with weather; deep Illinois winters drive up heating costs, while hot summers can increase electricity usage for air conditioning. Larger apartments or homes with inefficient insulation will also see higher bills.
Here are some tips for the newcomers:
In many Chicago buildings, heat (especially gas for winter warmth) is included in your rent. That can drastically lower out‑of‑pocket costs in the winter months, so always check before signing.
Even if average bills land in the ranges above, your actual monthly costs will depend on your lifestyle, thermostat habits, and whether utilities are pooled or metered individually.
Thinking about utilities early helps you avoid surprises and plan comfortably for Chicago’s distinct seasonal swings.
Food and groceries
Grocery prices in Chicago? They're pretty middle-of-the-road compared to other big cities. If you're shopping smart, a single person usually spends somewhere between $400-550 a month. That said, where you shop makes a difference. ALDI's great for basics, and ethnic grocery stores, there are tons here, often have way better prices on produce and meats than the big chains.
A lot of people bounce between different stores depending on what they need. Like, ALDI for pantry stuff, a local market for vegetables, and then Jewel or Mariano's when they need something specific.
Eating out varies wildly depending on where you go. Here are a few things to keep in mind:
- Casual meals like a sandwich, slice of pizza, or lunch plate usually run $12–$20.
- Mid-range restaurants tend to be more expensive, often $15–$35 per person, especially in popular areas like River North or the Loop.
- Fine dining dinners can exceed $60–$100, which is great for special occasions, but not something to do every night.
Transportation costs
Here's the thing about Chicago: You really don't need a car. The CTA (that's the Chicago Transit Authority) runs buses and the 'L' trains pretty much everywhere. For about $75 a month, you get unlimited rides. That covers your commute to work, trips to different neighborhoods on weekends, late-night rides home, whatever. It's predictable, and honestly, once you figure out the routes, it's pretty efficient.
Now, if you do bring a car or decide to get one, be ready for extra costs, such as:
Car insurance in Chicago averages $1,800–$3,500 per year6, depending on your coverage and driving record.
Gas costs add up quickly, especially with frequent city driving and traffic.
Regular oil changes, tires, and repairs are ongoing expenses.
For most newcomers, sticking with public transit is the easiest way to keep costs down. And beyond just saving money, it's actually convenient once you get used to it. You avoid traffic and don't stress about parking. You get to experience the city the way locals do, hopping on a train to check out a new neighborhood, grabbing food somewhere you hadn't planned.
Healthcare and insurance
Healthcare is tough to pin down because it really depends on your insurance situation, whether your employer offers benefits, and your personal health needs.
Here’s what catches people off guard:
- Insurance premiums
- Deductibles and co-pays
- Prescription medication costs
Average salary vs cost of living in Chicago
Chicago is in this interesting sweet spot with earnings and expenses. Yes, it costs more than most Midwestern cities, but salaries tend to be higher, too, and there's just more variety in terms of job opportunities.
The balance usually works out pretty well for professionals and families in the long term. Knowing how your potential salary stacks up against real living costs helps you go in with your eyes open.
Average salary in Chicago
The average salary in Chicago generally ranges from $60,000 to $75,000 per year7, depending on industry and experience.
What is a livable salary in Chicago?
- Single person: $55,000 – $65,000 per year
- Small family: $85,000 – $110,000 combined household income
Cost of living in Chicago vs other US cities
When you stack Chicago up against other major cities, it often lands in that middle zone between affordability and opportunity.
Chicago is noticeably cheaper, particularly when it comes to housing, everyday expenses, and transportation.
Rent is generally lower in Chicago, and many residents save money by relying on public transit instead of owning a car.
While more expensive than cities like Cleveland or Milwaukee, Chicago offers higher salaries, stronger job markets, and more career growth.
That's why a lot of newcomers think of Chicago as the 'middle-ground' city – you get the big-city perks without the insane costs you'd face on the coasts.
Tips to lower your living expenses in Chicago
Living in Chicago doesn't have to drain your savings if you're smart about it. Rent and daily stuff can pile up fast, but there are ways to bring costs down without sacrificing too much. Plenty of longtime residents live pretty comfortably by making a few strategic choices.
Areas like Albany Park, Rogers Park, Bridgeport, or Portage Park often offer lower rent while still providing good transit access, local amenities, and a strong community feel.
Splitting rent and utilities can cut housing costs dramatically, especially in popular neighborhoods where solo apartments are pricey.
Chicago’s CTA system makes it possible to commute, run errands, and socialize without paying for insurance, parking, gas, or maintenance.
Neighborhood grocery stores, produce markets, and ethnic shops often have better prices and help reduce everyday spending.
Small choices like these add up over time. Chicago becomes way more affordable when you're intentional about where you live and how you spend.
How BOSS Revolution helps newcomers settle in
BOSS Revolution helps newcomers manage daily life and stay connected by offering:
- Affordable international calls to family abroad
- Secure money transfers
- Mobile top-ups for international numbers
Conclusion
The cost of living in Chicago reflects a balance between affordability and opportunity. While Chicago is not the cheapest city in the United States, it offers strong value compared to other global metros.
With realistic budgeting, informed housing choices, and an understanding of everyday expenses, newcomers can settle comfortably and confidently. Planning ahead is the best way to make Chicago feel like home.
Sources: all third party information obtained from applicable website as of February 17, 2026
- https://www.salary.com/research/cost-of-living/chicago-il
- https://eathealthy365.com/the-true-cost-of-living-in-chicago-is-it-affordable/
- https://www.rentometer.com/average-rent-in/il/chicago-il
- https://www.rentcafe.com/average-rent-market-trends/us/il/chicago/downtown-chicago/
- https://latestcost.com/average-utilities-cost-chicago-residents/?
- https://costcheckusa.com/auto-insurance/auto-insurance-cost-in-chicago-il/
- https://www.payscale.com/cost-of-living-calculator/Illinois-Chicago
This article is provided for general information purposes only and is not intended to address every aspect of the matters discussed herein. The information in this article is not intended as specific personal advice. The information in this article does not constitute legal, tax, regulatory or other professional advice from IDT Payment Services, Inc. and its affiliates (collectively, “IDT”), and should not be taken or used as such by any individual. IDT makes no representation, warranty or guaranty, whether express or implied, that the content in this article is current, accurate, or complete. You should obtain professional or other substantive advice before taking, or refraining from, any action on the basis of the information in this article.
